STATE OF CONNECTICUT...design phase. If the project proposes an activity within or affecting a floodplain or that impacts storm drainage facilities, the DECD must submit a Flood Management

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STATE OF CONNECTICUT DEPARTMENT OF ECONOMIC

AND COMMUNITY DEVELOPMENT

BIDDING, CONTRACTING & CONSTRUCTION GUIDELINES

FOR STATE PROGRAMS

Revision: July 2018

CATHERINE H. SMITH COMMISSIONER

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TABLE OF CONTENTS PAGE

1. Introduction 3 2. Definitions 3 3. Conflict of Interest and Client Responsibility 4 4. Categories of Work 4 5. Categories of Clients 5 6. Construction Managers in Place of General Contractors 5 7. Planning and Compliance – Connecticut Environmental Policy Act 6

8. Connecticut Prevailing Wage and Davis-Bacon Act 7 9. Commission on Human Rights and Opportunities Requirements 8

10. DAS Prequalification of Bidder 9 11. Bid Package Submission Requirements 9 12. Bidding, Contracting & Construction Requirements for State Programs at $250K

Or less 10 13. Materials and Services 10 14. Advertising Your Project 10 15. Bonds/ Certified Checks 11 16. Liquated Damages 12 17. Insurance 12 18. Selecting the General Contractor 13 19. Documents to be Submitted to DECD upon Completion of Bidding 13 20. Documents to be Submitted to DECD Upon Construction Contract Execution 14 21. Contractor Payment Application, Retainage, and Change Orders 14 22. Construction Phase Submission Requirements 15 23. Construction Close-out Documentation 15 24. Construction Monitoring Procedures 16 25. Construction Oversight and Technical Assistance 17 26. Attachments

a) State Seal, DECD Logo, and State Sign Template 19 b) CHRO Contract Compliance Regulations Notification to Bidders Form 21 c) Compliance Certification 32

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1. INTRODUCTION The intent of these Bidding, Contracting and Construction Guidelines is to provide the guidance and the requirements needed to ensure a successful DECD sponsored project. It is DECD’s policy to maximize the benefits derived from the use of public funds, protect these funds from inappropriate use, and ensure that all Federal, State and Local requirements are met. To maximize the benefits of the State’s public funds, DECD’s requires a competitive public procurement process of all major contracts for construction. Competitive public bidding is a standard practice within the public works construction industry and provides numerous benefits such as:

a. Cost savings to the Client and State b. Fair competition for construction contracts c. Ensuring the use of qualified contractors

The DECD has prepared these guidelines to assist our clients through the agency’s requirements and policies. These guidelines reference definitions, client responsibilities, categories of work, project planning to ensure Connecticut Environmental Policy Act (CEPA) compliance and various State agencies’ laws & regulations, the requirements of a publicly advertised competitive bid process for construction activities, selection and contracting for construction, DECD’s progress monitoring of construction, and the required documents from bidding on through to Construction Closeout. Any Client modification or change to the bidding or selection process must be pre-approved by DECD.

2. DEFINITIONS

a. Public Building (C.G.S. section 1-1(e)): …shall include a statehouse, courthouse, townhouse, arsenal, magazine, prison, community correctional center, almshouse, market or other building belonging to the state, or any town, city, borough in the state, and any church, chapel, meetinghouse, or other building generally used for religious worship, and any college, academy, schoolhouse or other building generally used for literary instruction.”

b. Public Works Contract (C.G.S. Sec. 46a-68b): “…means any agreement

between any individual, firm or corporation and the state or any political subdivision of the state for construction, rehabilitation, conversion, extension, demolition or repair of a public building, highway or other changes or improvements in real property, or which is financed in whole or in part by the state, including, but not limited to, matching expenditures, grants, loans, insurance or guarantees and “municipal public works contracts”, “quasi-public agency project” and “awarding agency.” Have the same meanings as provided in section 4a-60g, as amended by this act. “Municipal public works contracts” and “quasi-public agency project” are also subject to contract compliance requirements. Please see the definitions for “municipal public

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works contract”, quasi-public agency project”, and “awarding agency” in C.G.S. section 4a-60g (a)(as amended by June SS Public Act 15-5).

c. Competitive Bidding (the Architect’s Handbook of Professional Practice,

Vol. 2, AIA 1987): Competitive bidding seeks to find the lowest reasonable price for the project through competition for the work. The theory is that many interested contractors have access to the project and that head-to-head competition will produce the best possible price consistent with marketplace conditions.

3. CONFLICT OF INTEREST NOTICE AND CLIENT RESPONSIBILITY

a. Members and relations of the governing body and/ or staff of the client shall be prohibited from receiving contracts for materials or services related to the Construction/ Renovation.

b. DECD shall review project documents to ensure consistency with project

goals, department standards and technical correctness. However, it is the responsibility of the client, their architect and attorney to ensure that the documents are technically correct, complete and, where necessary, protect the grantee and the State of Connecticut from any and all claims.

c. The client will comply with all relevant local, state and federal regulations,

and comply with all standard contracting practices to safeguard the interests of the client and the state including, but not limited to, contractor performance, security, insurance, permits, and inspections.

d. The client shall erect a suitable sign attributing funding to State of

Connecticut, Governor; Department of Economic and Community Development, and Commissioner. A sign template is attached to this document.

4. CATEGORIES OF WORK

a. Emergency Work: Public Health and Safety Improvements. DECD must approve any exemption from the bidding process for Emergency Work.

b. Minor Construction/Renovation: Single trade tasks and/or non-complex

construction with a total value of $100,000 or less.

c. Major Construction/Renovation: multiple-interrelated trade tasks and/or complex construction with a total value of over $100,000.

d. Brownfield Site: A brownfield is a real property, the expansion,

redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. The physical environmental clean-up or remediation of a brownfield site is considered a change in real property therefore a construction activity.

e. Individual physical development contracts under $10,000 in value shall not

be subject to competitive bid requirements.

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f. For projects only requiring material purchases see section 13.

g. For projects with a total project cost of $250,000 or less see section 12.

5. CATEGORIES OF CLIENTS

a. The nature of the project and the organization of DECD’s client determine whether a project’s construction contracts are publicly advertised for competitive bidding. Publicly advertised competitive bidding may also be appropriate for certain clients and/or projects. A public competitive process will help the client locate qualified firms and establish a market rate for the improvements.

b. Please refer to the table below as a guide for compliance with the contract

solicitation process.

Client Category Project Category Public Competitive Bid

Competitive Bid

Financial assistance to for-profit corporation for WC, M&E, Training, etc.

Private No No

Financial assistance to for-profit corporation for building, site or infrastructure improvements.

Private No Recommended

Financial assistance to not-for-profit corporation for WC, M&E, Training, etc.

Private Yes Yes

Financial assistance to not-for-profit corporation for building, site or infrastructure improvements when acting on behalf of a municipality

Public Yes Yes

Financial assistance to not-for-profit corporation for building, site or infrastructure improvements when acting on behalf of a municipality

Private Recommended Local Procurement

Process

Financial assistance to not-for-profit corporation for building, site or infrastructure improvements when acting for their own interests where state funding is less than 25% of the total project cost

Private Highly Recommended

Yes

Financial assistance to not-for-profit corporation for building, site or infrastructure improvements when acting for their own interests where state funding is greater than 25% of the total project cost

Private Yes Yes

Financial assistance to municipalities for construction/improvements of public infrastructure/public land

Public Yes Yes

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6. CONSTRUCTION MANAGERS IN PLACE OF GENERAL CONTRACTORS

The DECD grantee may employ a construction manager, but if this management method is used, each subcontract must be bid employing the same procedures outlined above with a minimum of three bids for each subcontractor, advertising for each and compliance with bonding, insurance, and minority regulations. Any specific construction trade work to be conducted by the construction manager requires DECD pre-approval.

7. PLANNING/PERMITTING – CEPA COMPLIANCE

a. CEPA - Sections 22a-1 through 22a-1h of the C.G.S. establish an environmental policy for Connecticut and a process for evaluating the environmental impacts of State actions. The process is further defined by Sec. 22a-la-1 through 22a-la-12 of the Regulations of Connecticut State Agencies.

b. Floodplain - The FEMA Flood Insurance Rate Map (FIRM) of the project boundary must be reviewed by the project design professional during the design phase. If the project proposes an activity within or affecting a floodplain or that impacts storm drainage facilities, the DECD must submit a Flood Management Certification to DEEP (C.G.S. 25-68b through 25-68h). The grantee’s design professional will be responsible for preparing the application and submission to DECD for review and subsequent certification to DEEP. DECD will not approve or fund any construction activities until certification has been accepted by the DEEP. Flood Management Certification must be approved prior to the completion of the bid package.

c. Historic Considerations – Projects involving the renovation, rehabilitation,

or additions to Historic buildings or sites will require consultation with the State Historical Preservation Commission (SHPO). Documentation of such consultation and approval by SHPO will be required. Historic buildings are defined as properties listed on the State or National Register for Historic Places, or properties eligible for listing on the State or National Register for Historic Places. Properties 50 years old or older are potentially eligible for listing. Historic sites are defined as sites that have yielded, or may be likely to yield, information important in prehistory or history. If you are unsure, please contact SHPO (860-256-2759 or at [email protected]).

d. Hazardous Materials – It is the grantee’s responsibility to investigate the

possible existence of hazardous materials and evaluate their impact on the proposed project. Hazardous materials include, but are not limited to, lead based paint, asbestos containing materials, PCBs etc. If hazardous materials are present on the project site or in existing buildings, appropriate mitigation, remediation must be included in the scope of work, plans and specifications.

e. Approvals – The grantee shall review any factors in conflict with the use of

the site or the planned project on the site to be developed or rehabilitated (e.g. building lines, zoning regulations, local ordinances, codes or other pertinent regulations or restrictions). Particular attention should be given to projects that will involve a change in use. The grantee shall obtain all necessary local,

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state, federal and utility companies' approvals and any special permits, variances or waivers that may be required.

8. WAGE RATES a. As per C.G.S. Sec. 31-53, municipal grantees shall pay prevailing wages rates

on a Public Works Contract. Under current law, the state or political subdivision must award the construction contract and be a party to the construction contract and not a mere grantor of funds for the project to require prevailing wage rates.

b. The provisions of C.G.S. Sec. 31-53 do not apply when the total project cost of all work to be performed by all contractors and subcontractors in connection with new construction of any public works project is less than $1,000,000 or where the total cost of all work to be performed by all contractors and subcontractors in connection with any remodeling, refinishing, refurbishing, rehabilitation, alteration or repair of any public works project is less than $100,000 (C.G.S. 31-53(g)).

c. As per C.G.S. Sec. 31-53c, any business organizations that receive DECD

financial assistance totaling one million dollars or more shall pay prevailing wages rates for any construction project. A business organization is considered any sole proprietorship, partnership, corporation, limited liability company, association, firm or other form of business or legal entity.

d. When Prevailing Wage Rates are required, the construction contract shall

contain the following provision:

"The wages paid on an hourly basis to any person performing the work of any mechanic, laborer or worker on the work herein contracted to be done and the amount of payment or contribution paid or payable on behalf of each such person to any employee welfare fund, as defined in subsection (i) of section 31-53, shall be at a rate equal to the rate customary or prevailing for the same work in the same trade or occupation in the town in which such construction, remodeling, refinishing, refurbishing, rehabilitation, alteration or repair project is being undertaken. Any contractor who is not obligated by agreement to make payment or contribution on behalf of such persons to any such employee welfare fund shall pay to each mechanic, laborer or worker as part of such person's wages the amount of payment or contribution for such person's classification on each pay day.”

e. The State Department of Labor's Wage and Workplace Standards Division

(860-263-6543 or at [email protected]) will assist the municipal grantee in determining the prevailing wage rate.

f. Where federal funds are involved, Davis-Bacon Act rates may apply. Consult funding source.

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9. CHRO REQUIREMENTS a. The grantees and their contractors will need to comply with Sections 4a-60,

4-60a, 4a-60g, 46a-56, 46a-68b, 46a-68c, 46a-68d, 46a-68e and 46a-68f of the Connecticut General Statutes (C.G.S.) and Sections 46a-68j-21 through 43 of the Regulations of Connecticut State Agencies. The above statutes and regulations require the grantee to “aggressively solicit the participation of legitimate minority business enterprises as bidders, contractors, subcontractors and suppliers of materials.” on projects. Consult your Project Manager for assistance.

b. All bidders must complete, sign, and return the “CHRO Contract Compliance

Regulations Notification to Bidders” form to the grantee at the time of bid opening. Bids not including this form should be considered incomplete and rejected. This form is attached, and can also be found at: http://www.ct.gov/chro/lib/chro/pdf/notificationtobidders.pdf

c. For municipal public works contracts valued at over $50,000, state law

requires the contractor, general contractor, or construction manager at risk to set a goal of twenty-five per cent (25%) of the state-funded portion of the contract for award to eligible subcontractors holding current small business enterprise (SBE) certification from the DAS under the provisions of C.G.S. 4a-60g. Of the portion of contracts set aside for SBE’s, a goal of twenty-five percent (25%) (or 6.25% of the value of the entire contract funded by the state) must be set aside for awards to eligible contractors holding current minority business enterprise certification (i.e.: DAS certified Minority (“MBE”), Women (“WBE”) and/or Disabled (“DisBE”) owned businesses). The contractor, general contractor, construction manager at risk must make good faith efforts to employ minority business enterprises as subcontractors and suppliers of materials on such projects.

d. For any municipal public works projects receiving between $50,000 and

$500,000 in state funding, an Affirmative Action Plan or Set Aside plan must be filed with the Commission on Human Rights and Opportunities (CHRO) within 30 days following the contract award notice (Note: Please contact the Contract Compliance Unit at 860-541-4709 to determine which plan is required).

e. For any municipal public works projects receiving over $500,000.00 in state

funding, regardless of the size of the contractor’s workforce, an Affirmative Action Plan or Set Aside plan must be filed within 30 days following the intent

to award notice and must be approved by the CHRO prior to the award of the

construction contract. The municipality will need to contact CHRO if they choose to award the construction contract without an approved plan in place. The grantee will then need to retain 2% per month of the total contract value until the contractor has submitted an approved affirmative action plan to CHRO and CHRO has granted approval. (Note: Please contact the Contract Compliance Unit at 860 541-4709 to determine which plan is required).

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f. Federal Financing (EDA, UD, CDBG, etc.) carries its own Minority/Women's contracting requirements. The DECD grantee must comply. The granting sources will provide instructions.

g. Please refer to pages 20-30 of this document which provide the grantee with

the CHRO Contract Compliance Regulation Notification to Bidders Form, CHRO Bid Advertisement Language, Sample Municipal Checklist for CHRO Compliance, CHRO Notification of Contract Award, and Bidder Notification Letter Sample for Municipal Public Works Projects over $500,000.

10. DAS PREQUALIFICATION OF BIDDERS

a. Municipal contracts for the construction or renovation of a public works project, where the estimated value is $500,000 or greater, will need to comply with C.G.S. Sec. 4b-91. In such cases the contractors must be pre-qualified by the State of Connecticut Department of Administrative Services (DAS). When applicable, this requirement will need to be included in the Invitation to Bid as a prerequisite for selecting the Lowest Responsible and Qualified Bidder.

b. "Prequalification" means prequalification issued by DAS to bid on a contract

or perform work pursuant to a contract for the construction, reconstruction, alteration, remodeling, repair or demolition of any public building or any other public work by the state or a municipality.

c. It is permissible to use AIA form A305, Contractor's Qualification

i. Statement, as a prerequisite to bidding, provided prequalification ii. Does not prevent minority/women owned firms from bidding.

iii. Consult your architect.

11. BID PACKAGE SUBMISSION REQUIREMENTS: a. All construction plans, specifications, and instructions to bidders must be

prepared by a licensed professional engineer or architect.

b. A draft bid package, including plans and specifications must be submitted to the Department of Economic and Community Development (DECD) for review not less than two weeks prior to advertisement. The project design professional should submit a project cost estimate as part of the package.

c. Where applicable, CONNDOT Form 816 (Specifications for Roads, Bridges,

and Incidental Construction) is a suitable substitute for construction and materials specifications.

d. The Bid Package must include the attached document “CHRO Contract

Compliance Regulations Notification to Bidders” form.

e. The Bid Package should clearly state the terms and conditions for bidding the project including the submission of the “CHRO Contract Compliance Regulations Notification to Bidders” form. Bids not including this form should be considered incomplete and rejected.

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12. BIDDING, CONTRACTING & CONSTRUCTION REQUIREMENTS FOR STATE PROGRAMS AT $250,000 OR LESS

a. Unless notified by DECD, for projects with a total project cost of $250,000 or less, the grantee will be required to certify that the project is in compliance with DECD design, bidding, contracting and construction monitoring requirements. Unless specifically waived by DECD, the grantee’s design professional must have the proper professional credentials, i.e. professional engineer or registered architect. It will be the responsibility of the grantee to certify and submit the appropriate documentation during the pre-bid phase, construction phase and close-out phase of the project. The grantee will be required to provide the DECD with the following signed certification documents before the Assistance Agreement Contract between the DECD and the grantee is executed:

b. Construction Bid Package, Drawings, and Specifications Compliance

Certification (page 30)

c. Construction Monitoring & Close-out Compliance Certification (page 31)

13. MATERIAL AND SERVICES a. Many State Department of Administrative Services (DAS) service contracts

are available to municipalities and 501(c) Non-Profits for use at the following site:

• http://www.biznet.ct.gov/SCP_Search/Default.aspx?AccLast=1 b. If this method is utilized, the DECD grantee must provide the DECD with the

DAS Contract number and the latest pricing within the service contract demonstrating that they select the lowest priced contractor. If the lowest priced contractor is unavailable, then the next lowest priced contracted should be contacted.

c. In cases where the total estimated material cost is below $25,000, fax, email

or letter solicitation for prices is acceptable. However, the DECD grantee must solicit at least three quotations for material.

d. Individual physical development contracts under $10,000 in value shall not

be subject to competitive bid requirements.

14. ADVERTISING YOUR PROJECT The DECD grantee is responsible for notifying the DECD of the Bid Opening date, time, and location as soon as it is determined.

In cases where the total project cost is below $100,000, bids may be solicited by letter, fax or email. However, the DECD grantee must solicit at least three quotations for such project.

Municipalities

a. Municipalities are required to post the Invitation to Bidders on the State Contracting Portal for a minimum of 5 business days. The DAS Contracting

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Portal, where municipalities can post an Invitation to Bidders, is located at http://das.ct.gov/Portal

b. Municipalities can also run a notice in the Public Notices section of one newspaper with broad circulation such as the Hartford Courant, Waterbury Republican, Bridgeport Post, New Haven Register, Norwich Bulletin, The News-Times or the Stamford Advocate. This notice must run for at least two (2) days.

c. For Municipal Public Works Contracts, please refer to page 21 regarding the

CHRO set-aside requirements bid notice language that must be included in the bid notice (DAS Contracting Portal and Print Media).

d. The Invitation to Bidders must end with the following statement:

“An Affirmative Action/Equal Opportunity Employer. Minority/Women's Business Enterprises are encouraged to apply. This contract is subject to state set-aside and contract compliance requirements.”

Private Non-Profit Projects

a. 501(c) Non-Profits are required to run a notice in the Public Notices section of one newspaper with broad circulation such as the Hartford Courant, Waterbury Republican, Bridgeport Post, New Haven Register, Norwich Bulletin, or the Stamford Advocate. This notice must run for at least two (2) days. The ad must end with the following statement:

“An Affirmative Action/Equal Opportunity Employer. Minority/Women's Business Enterprises are encouraged to apply.”

b. DECD recommends but does not require the applicant also run a notice in the

Public Notices section of a local newspaper. Trade media may also be used for placing project notices. Examples of such media are below.

c. F.W. Dodge Reports (1-800-393-6343); or www.dodge.construction.com d. New England Construction News/CDC News (888-281-5593), or

www.cdcnews.com e. The Blue Book www.thebluebook.com

15. BONDS/CERTIFIED CHECKS

a. DECD Grantees must require bid bonds (5% minimum) for contracts exceeding $50,000 or subcontracts exceeding $50,000 (C.G.S. 49-41).

b. DECD Grantees must require a Performance Bond for contracts exceeding

$25,000 or a subcontract exceeding $50,000 (C.G.S. 49-41).

c. DECD Grantees must require a Labor & Material Payment Bond for contracts exceeding $100,000.

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d. If a construction manager is employed, each subcontract exceeding $100,000 shall be bonded or a certified check required.

16. LIQUADATED DAMAGES

a. For Major Construction/Renovation Projects, the DECD Grantee shall provide an anticipated construction duration period (# of days) within the project manual that will be used in the bid package.

b. As a prerequisite to executing a construction contract with the “Lowest Responsible and Qualified Bidder”, the Contractor shall agree on the substantial completion date in accordance with the plans, project manual, and other contract documents, taking into consideration average weather conditions, availability of labor delivery of materials and equipment.

c. If the Contractor neglects, fails or refuses to achieve substantial completion of work by the substantial completion date in the executed construction contract, and such delay is not otherwise excused under this contract, then the Contractor shall agree to pay the Owner a liquidated damage for breach of contract for each and every calendar day that the Contractor shall be in default of the project work.

d. Damages due to Contractor’s delay are difficult to determine and accurately

specify so the Owner shall determine the most accurate amount of liquated damages for the project subject to DECD concurrence prior to bidding.

17. INSURANCE

a. The project’s Assistance Agreement between the DECD and the Grantee should be followed for insurance requirements.

b. Contractor's Certificate of Insurance shall be required. The grantee is

responsible for insuring that the levels are adequate.

c. State of Connecticut shall be listed as additionally insured under the following coverages:

1. Commercial General Liability - $1M per occurrence 2. General Aggregate - $2M 3. Umbrella Liability – If it is provided to the grantee.

d. Builder’s Risk Insurance, when applicable, should be obtained either through

the general contractor or construction manager. A copy of the Builder’s Risk Certificate should be provided to DECD with the State of Connecticut listed as A.T.I.M.A.

e. The “Hold Harmless” Indemnification endorsement of the insurance shall

include the interest of the municipality and the State of Connecticut. The Contractor and Subcontractors and other interests shall be so named.

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18. SELECTING THE GENERAL CONTRACTOR a. Lowest Responsible and Qualified Bidder: As used in this section, “lowest

responsible and qualified bidder” means the bidder whose bid is the lowest of those bidders possessing the skill, ability and integrity necessary to faithfully perform the work. Should the grantee reject the lowest bidder as not responsible and/or not qualified, the grantee shall immediately notify DECD of the reasons for the rejection and request DECD concurrence. The Commissioner of DECD shall at his/her discretion either approve or deny the grantee’s rejection. The grantee agrees to hold DECD harmless from any and all claims by rejected bidders.

b. Competitive Bidding - Contracts greater than $100,000 for DECD–sponsored

projects: The grantee will give full opportunity for free, open and competitive bidding for each contract calling for installation, construction, reconstruction, demolition, removal, site improvement work or other similar work. The grantee will ensure the advertisement or call for bids for each such contract and will provide adequate competition. The award of such contract, when made, will be made by the grantee as soon as practicable to the lowest responsible and qualified bidder.

c. In the event that the grantee does not believe the lowest bidder, as defined in

“a” above, to be responsible and qualified, the grantee will notify DECD requesting their concurrence in its choice before executing the general contract. In the event that there are less than three bidders, the grantee shall inform the department and request instructions.

d. The applicant must notify DECD before the contract is executed.

19. DOCUMENTS TO BE FORWARDED TO DECD AT COMPLETION OF BIDDING:

a. Completed bid tabulation and a complete copy of the three lowest responsive bids.

b. Signed and completed copies of the "CHRO Contract Compliance

Regulations Notification to Bidders” form from the three lowest responsive bids.

c. Copies of the bid bonds/certified checks from the three lowest responsive

bidders.

d. A copy of advertisements via the DAS Contracting Portal or Public Notice soliciting bids and/or publisher’s affidavit from newspapers.

e. A final copy of bid addendums (if any).

f. Project design professional’s letter of recommendation and grantee’s letter of

award for acceptance of the lowest responsible bidder.

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20. DOCUMENTS TO BE FORWARDED TO DECD ONCE THE GENERAL CONTRACT HAS BEEN EXECUTED

a. One copy of executed contract and grantee's authority to execute (Board Resolution, etc.)

b. Notice to Proceed

c. Copy of Performance Bond, Labor and Material Payment Bond, and Power

of Attorney for Surety (unless under $100,000).

d. Certificate of Insurance from general contractor covering liability and workers’ compensation and builder’s risk.

21. CONTRACTOR PAYMENT APPLICATIONS, RETAINAGE, AND

CHANGE ORDERS a. Change Orders: DECD does not approve or disapprove change orders. The

department reserves the right to review each change order, and advise the grantee as to its appropriateness. If the change order is within the scope of the work approved by the Bond Commission, and funding is available (DECD will not request additional funds) the grantee may approve change orders. DECD reserves the right to determine the state funding eligibility of each change order. The contractor must contact CHRO to determine if additional reporting to CHRO is required in connection with the change orders (e.g.: if there is a change in subcontractor(s), if there is an increase or decrease to the contract value).

b. Vendor Payments: DECD does not approve or disapprove payments to

Contractors. Copies of each approved Payment Application shall be sent to the department.

c. Retainage: No construction contract may provide for any retainage in an

amount that exceeds five percent (5%) of the estimated amount of a progress payment for the life of the construction project. If the contractor has provided Contractor’s Affidavit of Release of Liens (AIA form G706A) and lien waivers from major subcontractors and suppliers, a contractor may request the balance of retainage. If these documents are not provided, retainage cannot be paid until 91 days after the date on the Certificate of Substantial Completion.

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22. THE FOLLOWING DOCUMENTS SHALL BE SUBMITTED TO THE DECD CONSTRUCTION SPECIALIST DURING THE CONSTRUCTION PHASE OF THE PROJECT:

1. Copy of the contractor’s approved schedule of values.

2. Copy of the contractor’s construction schedule. Any adjustments to the

schedule throughout construction must be submitted to DECD.

3. Approved monthly requisitions. Back up materials may be requested.

4. Job meeting minutes.

5. Approved change orders. Back up materials may be requested.

6. Copies of correspondence between Owner, Architect and/or Contractor.

23. THE FOLLOWING DOCUMENTS SHALL BE SUBMITTED TO THE DECD CONSTRUCTION SPECIALIST AT THE COMPLETION OF THE PROJECT:

1. Certificate of occupancy (where applicable)

2. Record documents (As Built Drawings in PDF Format)

3. Certificate of Substantial Completion (AIA form G704)

4. Contractor’s Affidavit of Payment of Debts and Claims (AIA form G706)

5. Contractor’s Affidavit of Release of Liens (AIA form G706A)

6. Subcontractors and Suppliers Release or Waiver of Liens.

7. Consent of Surety Company to Final Payment (AIA G707)

8. Consent of Surety to a Reduction in or Partial Release of Retainage at 50%

project completion, if applicable: (AIA form G707A). Requires DECD concurrence.

9. All of the Contractor’s Application and Certificate for Payments (AIA form

G702, and continuation sheet G703).

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24. CONSTRUCTION MONITORING PROCEDURES

Construction Monitoring covers the development phases of projects from pre-bid activities through construction contract administration to final construction closeout. Functions include oversight of bidding, bid tabulation and recommendation of the lowest responsible bidder, coordination with pre and post bid meetings, review of construction contract documents, review of payment requisitions, change orders, shop drawings as well as construction inspection. The DECD Construction Specialist is the department’s technical support regarding the management and administration of construction projects funded by the State of Connecticut. It will be the responsibility of the grantee to submit the documents listed below, when applicable, to DECD. Electronic submissions are preferred. In addition to electronic submissions, hard copies of certain documents may also be requested. DECD will determine the extent of state monitoring, oversight and technical assistance for sponsored projects based on factors including estimated total project cost, project complexity and capacity of the applicant. DECD will notify the applicant of monitory requirements prior to the closing of the state assistance agreement. Unless notified by DECD, for projects with a total project cost of $250,000 or less, the grantee will be required to certify that the project is in compliance with DECD design, bidding, contracting and construction monitoring requirements. Unless specifically waived by DECD, the grantee’s design professional must have the proper professional credentials, i.e. professional engineer or registered architect. It will be the responsibility of the grantee to certify and submit the appropriate documentation during the pre-bid phase, construction phase and close-out phase of the project. The grantee will be required to provide the DECD with the following signed certification documents once the bid package has been prepared and once the construction contract has been executed:

1. Construction Bid Package, Drawings, and Specifications Compliance Certification (page 31)

2. Construction Monitoring & Close-out Compliance Certification (page 32)

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25. Construction Oversight and Technical Assistance:

Construction monitoring by OCP Construction Specialists, applicable to all programs, includes:

• Provide technical assistance involving various projects and programs with other offices within DECD.

• Work with Local, State and/or Federal officials during the development phase of a project.

• Conduct site investigations for feasibility of development.

• Review budgets and cost estimates as they relate to construction costs.

• Review plans and specifications for conformance to Agency requirements prior to bidding.

• Assist Developer/Sponsor during the bidding period.

• Review bid documents, bid advertisements, bid instructions and bidding requirements

• Attend and oversee pre-bid inspections, bid openings, construction contract briefings, and construction contract execution meetings.

• Review construction bids, bid bonds, and contractor selection.

• Compliance review of executed construction contract documents received; review contracts, bonds, schedule of values and insurance certificates between Sponsor and General Contractor

• Construction Oversight and Technical Assistance: Monitor progress of work during construction for compliance with agency, state & federal requirements and procedures, (labor and safety standards, wage standards, etc.)

• Conduct periodic inspections of the project construction activities.

• Review the following: construction meeting minutes, proposal requests, change orders; costs, review requisitions and construction periodical payments for work completed; architect’s supplemental instructions and directives; and correspondence.

• Review and process payment applications for disbursement of state funds.

• Review materials and products being used in the construction.

• Participate in the final inspection of the construction contract to ensure that the completed work is satisfactory. Review construction contract certificate of completion.

• Review construction closeout procedures with sponsor prior to acceptance of a project.

• Review construction closeout documentation prior to acceptance of a project, including certificates of occupancy and record documents. Certificates of substantial completion, affidavits of payments of debts, releases of liens, lien waivers, final applications and certificates for payment must also be reviewed.

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26. ATTACHMENTS

a. State Seal, DECD Logo, and State Sign Template (pages 19-20)

b. CHRO Contract Compliance Regulations Notification to Bidders Form & CHRO Bid Language. (pages 21-31)

c. Construction Compliance Certification Forms (pages 32-33)

19

4’-

0”

DEPARTMENT OF ECONOMIC & COMMUNITY DEVELOPMENT PROJECT SIGN

8’-0”

NAME OF THE PROJECT

NAME OF THE SPONSOR/DEVELOPER

Constructed in cooperation with the

STATE OF CONNECTICUT DANNEL P. MALLOY, GOVERNOR

Department of Economic and Community Development Catherine H. Smith, Commissioner

and the

Name of Town/City Name of Chief Elected Official and title

Name of Architect Name of General

Contractor

SIGN PANEL: ¾” MDO-EXT-APA PLYWOOD SUPPORTED WITH (2) 4X4 TREATED WOOD COLUMNS AND

SECURED 4’ INTO GRADE. TOP OF SIGN AT 8’-0” ABOVE GRADE.

COLORS: ALL LETTERS AND SYMBOLS ARE TO BE ROYAL BLUE. THE BACKGROUND WILL BE WHITE ENAMEL. BACK OF PLYWOOD AND SUPPORT STRUCTURE SHALL BE PAINTED MATTE BLACK.

TYPEFACE: HELVETICA MEDIUM LOCATION: SIGN MUST BE LOCATED TO BE CLEARLY VISIBLE TO THE PUBLIC. TIMING: INSTALL AT THE START OF CONSTRUCTION AND REMOVE AT CONSTRUCTION COMPLETION. STATE SEAL & DECD LOGO: ATTACHED

20

STATE SEAL

DECD LOGO

21

22

23

24

25

26

BID ADVERTISEMENT LANGUAGE (for DAS Contracting Portal Bid Notice) This contract is subject to state contract compliance requirements, including non-discrimination statutes and set-aside requirements. State law requires a minimum of twenty-five (25%) percent of the state-funded portion of the contract be set aside for award to subcontractors holding current certification from the Connecticut Department of Administrative Services. The contractor must demonstrate good faith effort to meet the 25% set-aside goals.

BID NOTICE LANGUAGE (for print media)

This contract is subject to state set-aside and contract compliance requirements.

BID LANGUAGE (for bid documents)

The contractor who is selected to perform this State project must comply with CONN. GEN. STAT. §§ 4a-60, 4a-60a, 4a-60g, and 46a-68b through 46a-68f, inclusive, as amended by June 2015 Special Session Public Act 15-5. State law requires a minimum of twenty-five (25%) percent of the state-funded portion of the contract for award to subcontractors holding current certification from the Connecticut Department of Administrative Services (“DAS”) under the provisions of CONN. GEN. STAT. § 4a-60g. (25% of the work with DAS certified Small and Minority owned businesses and 25% of that work with DAS certified Minority, Women and/or Disabled owned businesses.) The contractor must demonstrate good faith effort to meet the 25% set-aside goals. For municipal public works contracts and quasi-public agency projects, the contractor must file a written or electronic non-discrimination certification with the Commission on Human Rights and Opportunities. Forms can be found at: http://www.ct.gov/opm/cwp/view.asp?a=2982&q=390928&opmNav_GID=1806

27

SAMPLE MUNICIPAL CHECKLIST FOR CHRO CONTRACT COMPLIANCE

_____ POST THE BID NOTICE WITH CHRO LANGUAGE INCLUDED _____ PRE-BID MEETING (IF APPLICABLE) _____ PROVIDE BID DOCUMENTS WITH CHRO LANGUAGE INCLUDED

(Notification to Bidders/Contract Compliance Monitoring Report included) _____ SCREEN BIDS

_____ CONFIRM CONTRACTOR HAS NON-DISCRIMINATION CERTIFICATE/AFFIDAVIT INCLUDED WITH BID DOCUMENTS

_____ CHECK WITH CT LAW JOURNAL TO ENSURE CONTRACTOR IS NOT DEBARRED

_____ SELECT BIDDER _____ SEND NOTICE TO CHRO AND SELECTED BIDDER: _____ $50,000 TO $499,999 CONTACT AWARD NOTICE _____ $500,000 AND ABOVE INTENT TO AWARD CONTRACT NOTICE _____ EXECUTE CONTRACT WITH CONTRACT COMPLIANCE AND SET-

ASIDE LANGUAGE ______ $50,000 TO $499,999 WHEN AWARDED ______ $500,000 AND ABOVE ONLY WHEN:

_____ CONTRACTOR HAS SUBMITTED AN APPROVED AFFIRMATIVE ACTION PLAN TO CHRO

_____ REQUESTED APPROVAL FROM CHRO TO AWARD CONTRACT AND RETAIN 2% PER MONTH OF THE TOTAL CONTRACT VALUE UNTIL CONTRACTOR HAS SUBMITTED AN APPROVED AFFIRMATIVE ACTION PLAN TO CHRO AND CHRO HAS GRANTED APPROVAL.

_____ ENSURE A COPY OF A LETTER OF TRANSMITTAL FROM THE

CONTRACTOR WAS RECEIVED CONFIRMING AN AFFIRMATIVE ACTION PLAN WAS FILED WITH CHRO

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TO: Contract Compliance Unit Commission on Human Rights and Opportunities CHRO Form CC052 FROM: Click here to enter text. DATE: Click here to enter a date. SUBJECT: Notification of Contract Award

As required by Connecticut Contract Compliance Regulations Sec. 46a-68-31 this is to notify the Commission that the following contract has been awarded. CONTRACT NUMBER: Click here to enter text. PROJECT NAME: Click here to enter text. PROJECT LOCATION: Click here to enter text. DURATION OF CONTRACT: Click here to enter text. DOLLAR VALUE OF CONTRACT: Click here to enter text. SET-ASIDE VALUE: SBE Click here.% Click here.$ MBE Click here.% Click here.$

THIS IS A PUBLIC WORKS CONTRACT ☐

THIS IS NOT A PUBLIC WORKS CONTRACT ☐

------------------------------------------------------------------------------------------------------- CONTRACTOR INFORMATION NAME OF CONTRACTOR: Click here to enter text. MAIN OFFICE ADDRESS: Click here to enter text. Click here to enter text. TELEPHONE NUMBER: Click here to enter text. NUMBER OF EMPLOYEES: Click here to enter text. (If known)

SUBCONTRACTOR INFORMATION: Please list any subcontractors who were listed by the Contractor for this project: Click here to enter text.

29

WERE THE FOLLOWING FACTORS CONSIDERED IN THE SELECTION OF THIS CONTRACTOR? 1. The bidder’s success in implementing an affirmative action plan:

☐Yes ☐No ☐ Unknown

2. The bidder’s success in developing an apprenticeship program complying

with Sections 46a-68-1 to 46a-68-17, inclusive:


3. The bidder’s promise to develop and implement a successful affirmative

action plan:


4. The bidder’s submission of EEO-1 data indicating that the composition of

the workforce is at or near parity when compared to the racial and gender composition of the workforce in the relevant labor market area:


5. The bidder’s promise to set aside a portion of the contract for legitimate

minority business enterprises:


AGENCY CONTACT PERSON NAME: Click here to enter text . JOB TITLE: Click here to enter text . ADDRESS: Click here to enter text . TELEPHONE: Click here to enter text .

Bidder Notification Letter Sample Municipal Public Works Projects over

$500,000

XYZ Company Street address city/state

RE: Project number and name Project location Contract award amount SBE/MBE Set-Aside Requirement (choose one of three options)

(Choose the provision that applies to the award, and delete the remaining two boxes)

Your company has been identified as the bidder of choice for the above referenced project. The work for this project falls under the provisions of CONN. GEN. STAT. Sections 46a-68c and 46a-68d which requires that prior to the award of this contract by this agency, you must have your company affirmative action plan approved by the Commission on Human Rights and Opportunities. Enclosed for your convenience is the suggested format for an affirmative action plan to assist in the preparation of your company plan. Should you have any questions regarding the preparation of your plan, you may contact the Contract Compliance Unit at the Commission on Human Rights and Opportunities at (860) 541-4709.

A copy of your plan must be submitted to the Commission on Human Rights and Opportunities within 30 days of your receipt of this letter. The Commission will review your affirmative action plan as required by Sections 46a68j-25 through 29 of the Administrative Regulations of Connecticut State Agencies within 60 days of submission. When the plan is approved, the

25% for SBE contractors 6.25% for SMBE Contractor must document of which 25% (or 6.25% of contractors good faith effort to

project total) for SMBE include MBE contractors

contractors

Attn: company official

Date:

Subject: Affirmative Action Plan Requirements

Dear

31

Commission will notify you and this agency so the contract can be awarded. Please send your affirmative action plan to:

Commission on Human Rights and Opportunities 25 Sigourney Street Hartford, CT 06106 Attn: Contract Compliance Unit

Optional: You are also instructed to send a copy of the letter transmitting your plan to the Commission on Human Rights and Opportunities to:

Contract Awarding Agency Name (address etc.)

If you have any other questions concerning this matter, please contact the undersigned at (860) (phone #)

Sincerely,

Agency official

copy: Contract Compliance Unit, CHRO

C:aapnotltr

32

BIDDING, CONTRACTING & CONSTRUCTION REQUIREMENTS FOR STATE PROGRAMS AT $250,000 OR LESS

CONSTRUCTION BID PACKAGE, DRAWINGS AND SPECIFICATIONS COMPLIANCE CERTIFICATION

GRANTEE: _____________________________________________________________ PROJECT NAME AND MUNICIPALITY: ____________________________________ ________________________________________________________________________ I,___________________________________, as the responsible grantee do hereby certify that the construction documents (Bid Package, Drawings & Specifications) shall be completed by a licensed professional engineer or architect for the above project and certify the following: 1. A complete copy of the Bid Package and Invitation to Bid shall be submitted to or

reviewed by the Department of Economic & Community Development (DECD). 2. The Drawings and or Specifications for the above Project shall cover the scope of

work, as indentified in the DECD Financial Assistance Proposal. 3. The DECD Bidding, Contracting and Construction Guidelines for State Programs

have been thoroughly reviewed by the grantee and/or qualified design professional. 4. The Bid Package shall be technically correct and complete and shall clearly show that

all of the DECD terms and conditions for bidding the project shall be met.

Signed_________________________________________ Title: __________________________________________________________________ Address_________________________________________________________________ Telephone______________________________________Date_____________________

33

CONSTRUCTION CONTRACT AND MONITORING

COMPLIANCE CERTIFICATION

GRANTEE: _____________________________________________________________ PROJECT NAME AND MUNICIPALITY: ____________________________________ ________________________________________________________________________ I, ___________________________________, and as the responsible grantee do hereby certify that the bid results shall be reviewed by a licensed professional engineer or architect for the above project and certify the following: 1. The qualified design professional shall assess and tabulate all of the bids and shall

make a recommendation to award the bid to the lowest responsible bidder whose bid shall be the lowest of those bidders possessing the skill, ability and integrity necessary to faithfully perform the work.

2. The required bid result documentation shall be submitted to DECD at the completion

of bidding before the grantee moves forward with executing the construction contract. 3. The lowest responsible bidders executed contract, grantee’s authority to execute, and

all other documentation required by the DECD once the general contract is executed shall be forwarded to the DECD before construction commences.

4. It shall be the responsibility of the grantee to provide construction oversight and

inspection on the project by following all of the procedures and submitting all of the documentation indicated in the Construction Monitoring Procedures.

Signed_________________________________________ Title: __________________________________________________________________ Address_________________________________________________________________ Telephone______________________________________Date_____________________